Napa Valley Distillery (NVD), a family owned and operated distillery based in Napa (of course), is currently raising growth capital on Indiegogo’s investment crowdfunding vertical. The company is capitalizing on recent trends in the distillery business demonstrating growing demand. From 2010 to 2015, the number of craft distillers grew at a compound annual growth rate of 41.6%. As of August 2016, there were apparently 1,315 craft distillers active in the US as consumers seek out bespoke booze.
Founded in 2009 , Napa Valley Distillery is a craft producer of a dozen or so small-batch and limited-release spirits. NVD is said to be best known for creating Napa Vodka – a handcrafted vodka made with single vintage Napa Valley Sauvignon Blanc wine grapes. Their Vodka was named as one of the Top 50 Spirits in the World by Wine Enthusiast when it was released in 2011. Other products include brandy, gin, rum, whiskey, and bourbon, as well as barrel-aged craft cocktails made from premium California brandies and all-natural ingredients. According to company lore, NVD is the first distillery to open its doors in Napa since prohibition (there are other active distilleries in the Napa valley region). All of those wineries probably needed some stronger, local competition. A quick trip to Yelp and the reviews confirm that NVD has differentiated itself quite effectively. Nestled amongst all of those storied vineyards and amazing wines is an old-school tasting room and distillery that is capitalizing on the demand for small batch alcohol.
The company’s 12,000-square-foot facility currently houses a tasting salon and event center with an additional vintage bar shop and tasting room located nearby. NVD intends on building a full kitchen to operate a restaurant in its main location, allowing NVD to serve cocktails, beer, and wine any time of day and enable a new cocktail and food pairing service.
As for company growth, in 2016 NVD generated a net profit of over $260,000 – an increase of 34% over year prior.
Napa Valley Distillery has already reached its minimum goal of raising $50,000 but according to the Form C, NVD expects to keep the offer live until August as it is hoping the amount raised will go higher. NVD is offering a debt based product based off a revenue share over the next few years. The upside is that if the business continues to grow and is managed effectively you stand to get your money back and more. The downside is if they happen to get acquired there is no upside reward. Risk vs. return.
The beverage sector has been a hot segment of investment crowdfunding capitalizing on brand infinity of a consumer facing product. NVD plans to expand its distribution internationally and says it already has distribution relationships in China and Canada.
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